A socially responsible business (SRB) is a generally for-profit venture that seeks to leverage business for a more just and sustainable world. The objective of the SRBs involves more than just maximizing profits for the shareholders; it is also about creating positive changes and making valuable contributions to the stakeholders such as the local community, customers, and staff.[1] In other words, the SRB is both profit-oriented and socially responsible as these companies seek to make financial gains, and at the same time, aim to improve the well being of the community.[2] In doing so, the businesses engage in the voluntary initiatives with the aims of improving in various areas ranging from the social to environmental aspects of the society.[1]
The concept of SRB is considered to be the highest level of involvement between the company and the community in which it operates. It holds a similar concept to Corporate Social Responsibility (CSR) in terms of having a common goal to make positive contributions, minimizing harmful effects, and being a force for good in society.[3] The main difference is that the SRB goes beyond these activities and ultimately aims to create a market space for itself.[4] It can be achieved through forming partnerships and alliances with the local community and collaborating with groups such as non-governmental NGOs. The SRB prioritizes a socially responsible activity and demands to create a long term relationship with their community.[1]
- ^ a b c Lewis, David (January 2000). "Promoting Socially Responsible Business, Ethical Trade and Acceptable Labour Standards" (PDF). Social Development Department (SD SCOPE Paper No. 8). Retrieved 23 October 2014.
- ^ Conley, Chip; Fishman Friedeenwald, Eric (2008). Marketing that matters: 10 practices to profit your business and change the world (First ed.). San Francisco, California: Berrett-Koehler Publishers, Inc. ISBN 978-1-57675-383-5.
- ^ Hall, Dave; Jones, Rob; Raffo, Carlo; Anderton, Alain (2008). Business Studies (Fourth ed.). Essex: Pearson Education. ISBN 9781405892315.
- ^ Liyanage, Dr. Uditha (n.d.). "From CSR to SRB" (PDF). The Institute of Chartered Accountants of Sri Lanka. Retrieved 23 October 2014.